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U.S. Department of Energy
Office of Scientific and Technical Information

Study of the effects of rising energy prices on the low and moderate income elderly

Technical Report ·
OSTI ID:7366613

Impacts of rising energy costs on low and moderate income elderly are assessed, including effects on income and expenditures, housing, and transportation. In the US the elderly poor consume less energy than any other age-income group, but they spend a higher proportion of their total budget on energy. Higher energy costs have adversely affected the cost and quality of care for the elderly in nursing homes. This study shows that natural gas, which is used predominantly for home heating, cooking, and water heating, is an essential energy source for the elderly. Concerning transportation expenditures, lower income households spend a smaller portion of their budgets on transportation than other households. The elderly in New England and Middle Atlantic states were affected the most by energy price increases, while the south and southwest felt the impact of energy costs the least. Certain policies to alleviate impacts are recommended: (1) the establishment of a separate Consumer Price Index (CPI) for the elderly; (2) automatic CPI increases in Old Age, Survivors, and Disability Insurance (OASDI) and Supplemental Security Income (SSI) benefits; (3) an evaluation of potential impacts on the elderly of taxing energy sources to achieve energy conservation; (4) the development of mass transit facilities; (5) an adjustment of utilities' rate structures; and (6) greater assistance for improving housing conditions of the elderly.

Research Organization:
Federal Energy Administration, Washington, D.C. (USA)
OSTI ID:
7366613
Report Number(s):
FEA-242-E
Country of Publication:
United States
Language:
English